An official report issued by the Georgia Department of Audits and Accounts in June 2023 relating to its analysis of the State’s Qualified Education Expense (“QEE”) Credit Program found that the program likely leads to an annual net cost savings of $28 million for state taxpayers and between $24.8 million and $33.4 million of annual savings to local taxpayers. Although the QEE Credit program saves state and local taxpayers up to an estimated $61.4 million each year, the total amount of QEE credits available each year is capped at $120 million, which is less than one-half of one percent of the over $26 billion Georgia taxpayers spend on the State’s public schools.

But, beyond the fiscal savings, the Georgia DOAA report acknowledges that “numerous empirical studies have found that school choice programs (such as private school tax scholarships and vouchers) have correlated with positive impacts on student test scores and college attainment, providing potential public benefits.” Because, as noted in the report, college enrollment and degree completion correlate with higher lifetime wages, the QEE Program “is expected to generate long-term economic impact through increased tax revenue.”

Further, the Georgia DOAA report authors acknowledge (referencing supporting research) that, “If school choice programs lead to increased attainment outcomes and higher wages, they may also lead to other positive impacts, such as improved health care and decreased crime.” The increases in academic achievement, higher wages, improved health, and decreased crime associated with the QEE Credit program are particularly relevant, as 68 percent of scholarships were awarded to families with incomes below 250 percent of the poverty line (below $70,000 for a family of four) and 86 percent of scholarships went to families below 400 percent of the poverty level ($111,000 for a family of four).

“To have an official analysis by expert state economists confirm that Georgia’s K-12 tuition tax credit program saves Georgia taxpayers an estimated $61.4 million a year should put to rest false claims by school choice opponents that the program is a drain on public finances,” stated Lisa Kelly, President of Georgia GOAL Scholarship Program, Inc., which is Georgia’s largest K-12 student scholarship program.

As one of only two studies conducted by state officials of the fiscal and economic impact of tuition tax credit programs (the other one being conducted in Iowa in December 2022), the Georgia DOAA report could be the impetus for the adoption (or expansion) of school choice programs in Georgia and other states.